NEW YORK (TheStreet) -- Shares of The St. Joe Co. (JOE - Get Report) are up 2.08% to $22.04 in pre-market trade after the Florida real estate development and operating company was upgraded to "outperform" from "market perform" at Raymond James (RJF - Get Report) with a $25 price target.
Separately, TheStreet Ratings team rates ST JOE CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ST JOE CO (JOE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including poor profit margins and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JOE's very impressive revenue growth greatly exceeded the industry average of 36.4%. Since the same quarter one year prior, revenues leaped by 210.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 16389.4% when compared to the same quarter one year prior, rising from -$2.47 million to $403.00 million.
- In its most recent trading session, JOE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- ST JOE CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ST JOE CO reported lower earnings of $0.05 versus $0.07 in the prior year. For the next year, the market is expecting a contraction of 60.0% in earnings ($0.02 versus $0.05).
- The gross profit margin for ST JOE CO is currently extremely low, coming in at 5.54%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 485.54% has significantly outperformed against the industry average.
- You can view the full analysis from the report here: JOE Ratings Report